Trade promotion expenses as percent of sales is higher relative to competitors in the case of:
A)prospector strategy.
B)differentiated defender strategy.
C)low cost defender strategy.
D)differentiated reactor strategy.

Question

Quizplus · Accepted Answer

Prospector strategy usually involves launching new products or services, entering new markets, or undertaking acquisitions. These activities require significant marketing and promotion efforts to create awareness, generate demand, and establish a foothold in the market. As a result, companies pursuing a prospector strategy often have higher trade promotion expenses relative to their sales compared to their competitors who follow other strategies.

Trade Promotion Expenses as Percent of Sales Is Higher Relative